Question
Suppose a stock has generated the following annual returns: 13.2%, -11.4% and 7.2%. What was the standard deviation of its returns? Answer in percent, rounded
Suppose a stock has generated the following annual returns: 13.2%, -11.4% and 7.2%. What was the standard deviation of its returns? Answer in percent, rounded to two decimal places (e.g., 4.32% = 4.32).
There is a 20% chance of an economic boom and a 15% chance of a recession in the next year. Otherwise, the economy is expected to stay normal. You forecast that McDonald's stock will go up 21.1% if the economy is booming, 7.4% if the economy is normal, and go down 9.5 if there is a recession. What is McDonald's expected return under these scenarios? Answer in percent, rounded to one decimal place.
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Behavioral Finance Psychology Decision-Making and Markets
Authors: Lucy Ackert
1st edition
324661177, 978-0538752862, 538752866, 978-1111781675, 1111781672, 978-1133455486, 978-0324661170
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